Impact of not having bank clearing account?

[Former Member]

My client doesn't want to use bank clearing account and wants to directly cr or dr the main bank account whenever a payment is received or made. Could you guys tell me what will be the impact of this, as I see reconciliation might be an issue.

[Former Member · Accepted solution]

It will be a major nightmare when you do your bank reconciliation, how will you know what is the actual balance and the outstanding things in the accounts.

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[Former Member]

Actually, we have two bank accounts. One is for wire in/out and deposits, account A, and the other is for outgoing checks, account B. The amount from the main bank account, a/c A, gets transferred to the account B at the month end, so it works as a zero balance account. How do we replicate this scenario in SAP.

If we don't have the clearing account set up, what kind of impact will it have on the bank reconciliation process.

[Former Member]

Avinya,

The best solution is to seperate the AP and AR process. The reason i am mentioning this is for better reconciliation process.

According to that, you would have an account 1 for AR i.e deposits(including Wire Ins) and then accounts 2(Wire Outs) and 3 for Check outs.

It's better ( recommended) to have a clearing acct while making payments, so that you have an idea of how much is the outstanding balance. If not, the whole of reconciliation process gets a little complicated - The outstanding balance can still be found out, but as i said, lot of calculations need to be done.

Hope that helps..

Thanks,

Nandita